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Digital asset manager Osprey Funds has laid off 15 employees and currently operates with less than 10 employees, including four members of its management team, a source familiar with the matter told Yahoo Finance.
“Osprey laid off last summer and fall due to the crypto market downturn, but Osprey remains strong,” Osprey Funds CEO Greg King told Yahoo Finance via email.
Osprey’s Bitcoin Trust (OBTC), which is available at online brokerages Fidelity, Charles Schwab and TD Ameritrade, had around $46.9 million in assets under management as of Friday, January 6.
Including its BNB, Solana, Polkadot and Algorand trusts, the crypto product issuer has $67.6 million in assets under management in its trusts.
Hit by declining investor appetite for risky assets, digital asset prices plunged in 2022, sending some highly indebted investors crashing. These impacts continue to ripple through the industry in the form of bankruptcies and layoffs.
Crypto hedge fund Three Arrows Capital filed for bankruptcy in early July after facing numerous margin calls. Voyager Digital and Celsius Network followed with Chapter 11 filings soon after, putting thousands of retail investors on the hook for their deposited funds.
In November, crypto exchange FTX filed for bankruptcy. Court documents show the exchange used client funds to offset losses suffered by interconnected hedge fund Alameda Research.
Former FTX CEO Sam Bankman-Fried (C) arrives to make a plea before U.S. District Judge Lewis Kaplan in federal court in Manhattan, New York, January 3, 2023. (Photo by Timothy A. CLARY/ AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)
A fund flow report from digital asset product issuer CoinShares released on Monday showed that flows into crypto products over the past week have “continued a mild negative sentiment that has persisted” into 2023. , with short bitcoin investment products seeing minor inflows of $1.2 million last week.
And the Osprey cuts are just one example of a much larger trend in crypto layoffs.
On April 12, Osprey listed 22 employees on its website. By August 15, that number had dropped to 19; by November 28, the number had fallen to just 4 executives. Osprey previously tried to launch a hedge fund in August, the source said, but the company told employees its latest cuts were due to the hedge fund’s failed launch.
The story continues
Crypto firms have cut nearly 9,500 workers through 2022 according to an annual report by The Block Research. The figure included major exchanges such as Crypto.com (2,260), Coinbase (1,160), Kraken (1,100), Robinhood (1,060), as well as lenders Celsius (150) and BlockFi (250), which has also since filed for bankruptcy. .
Based on layoffs.fyi data compiled by The Block, the tech industry has seen around 151,600 job cuts through 2022, with crypto job losses contributing 6.2% of the total.
And the job cuts in the industry seem far from over.
Early Friday morning, it was revealed that Asia-based crypto exchange Huobi was planning to cut its staff by 20%. In a statement given to Yahoo Finance, a spokesperson for Huobi, “staff optimization” aims to “optimize structure” and “improve efficiency” so that the veteran crypto exchange can “come back within three first” exchanges in volume of transactions. Huobi had previously laid off some 300 employees last year.
Last Thursday, crypto lender Genesis laid off 30% of its workforce, leaving 145 employees at the struggling crypto lending company. This decision follows the resignation of its CEO, Michael Moro, as well as the hiring of new managers.
On the same day, a spokesperson for its parent company Digital Currency Digital Currency Group (DCG) confirmed that it was closing its wealth management division, HQ, at the end of January. The story was first reported by The Information.
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Sources 2/ https://news.google.com/__i/rss/rd/articles/CBMiggFodHRwczovL2ZpbmFuY2UueWFob28uY29tL25ld3MvZGlnaXRhbC1hc3NldC1tYW5hZ2VyLW9zcHJleS1mdW5kcy1sYXlzLW9mZi1zdGFmZi1hcy1jcnlwdG8td2ludGVyLWZhbGxvdXQtY29udGludWVzLTE1MTE1NzAzMS5odG1s0gGKAWh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL2RpZ2l0YWwtYXNzZXQtbWFuYWdlci1vc3ByZXktZnVuZHMtbGF5cy1vZmYtc3RhZmYtYXMtY3J5cHRvLXdpbnRlci1mYWxsb3V0LWNvbnRpbnVlcy0xNTExNTcwMzEuaHRtbA?oc=5 The mention sources can contact us to remove/changing this article |
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